Templeman v. Beasley

USCA1 Opinion









December 21, 1994
[NOT FOR PUBLICATION]

UNITED STATES COURT OF APPEALS
FOR THE FIRST CIRCUIT

____________________


No. 93-2337

ANDREW TEMPELMAN & PRISCILLA TEMPELMAN,

Plaintiffs, Appellants,

v.

PATRICIA BEASLEY, EXAMINER FOR THE
U.S. TREASURY DEPARTMENT, INTERNAL REVENUE SERVICE,

Defendant, Appellee.


____________________

APPEAL FROM THE UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF NEW HAMPSHIRE


[Hon. Martin F. Loughlin, Senior U.S. District Judge] __________________________

____________________

Before

Torruella, Chief Judge, ___________
Selya and Cyr, Circuit Judges. ______________

____________________

Andrew Tempelman and Priscilla Tempelman on brief pro se. ________________ ___________________
Paul M. Gagnon, United States Attorney, Loretta C. Argrett, ________________ ____________________
Assistant Attorney General, Gary R. Allen, Jonathan S. Cohen, and ______________ __________________
Sarah Knutson, Attorneys, Tax Division, Department of Justice, on ______________
brief for appellee.


____________________


____________________















Per Curiam. Plaintiffs Andrew and Priscilla Tempelman __________

are long-time tax protesters--proponents of the view that the

United States internal revenue system is invalid. In 1992,

based upon audits of plaintiffs' returns for the years 1986

through 1988, the Internal Revenue Service (IRS) determined,

inter alia, that various deductions had been improperly ___________

claimed and that additional taxes were owed. Plaintiffs

successfully challenged this determination in tax court,

where a settlement with the IRS resulted in the elimination

of most or all of such liability. They then filed the

instant pro se action in state court, seeking damages from

the IRS agent who had conducted the audits. Plaintiffs

charged that defendant had deliberately and maliciously

imposed further tax liabilities in retaliation for their

dissident views, in violation of various statutory and

constitutional provisions.

Defendant removed the action to federal court and then

moved to dismiss, claiming that parts of the complaint were

jurisdictionally defective while other parts failed to state

a claim. In a comprehensive opinion, the district court

agreed and dismissed the complaint under Fed. R. Civ. P.

12(b)(1) & (6). The court went on to find that plaintiffs

were engaged in a "vendetta" against the IRS, having filed

numerous frivolous cases against the agency and its employees

solely for the purpose of harassment. As a result, the court

















enjoined plaintiffs from filing any further such actions

without judicial approval. It also imposed monetary

sanctions. Plaintiffs, in summary fashion, challenge each of

these rulings on appeal.1

I.

We need not linger long over the merits of the

complaint. Plaintiffs have relied on a plethora of statutory

provisions in an attempt to establish jurisdiction and/or

state a claim. Each proves unavailing. For example, two

criminal provisions on which they rely--18 U.S.C. 241,

242--do not give rise to a civil action for damages. See, ___

e.g., Rodi v. Ventetuolo, 941 F.2d 22, 29 n.8 (1st Cir. ____ ____ __________

1991); Cok v. Cosentino, 876 F.2d 1, 2 (1st Cir. 1989) (per ___ _________

curiam). A third such provision, contained in 26 U.S.C.

7214, is likewise inapposite; "a precondition to a taxpayer

suit for damages against a revenue agent under this provision

is the criminal conviction of the agent." Hollett v. _______

Browning, 711 F. Supp. 1009, 1012 n.2 (E.D. Cal. 1988). ________

Plaintiffs' reliance on 42 U.S.C. 1983, 1985 (and their

jurisdictional counterpart, 28 U.S.C. 1343) is misplaced.

Section 1983 is inapplicable to federal officials not alleged

to have acted "under color of state law." See, e.g., ___ ____

District of Columbia v. Carter, 409 U.S. 418, 424-25 (1973); ____________________ ______

____________________

1. Given the disposition we reach, there is no need to
decide whether the notice of appeal was ineffective as to
Priscilla Tempelman, as defendant suggests.

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Soldevilla v. Secretary of Agric., 512 F.2d 427, 429 (1st __________ ____________________

Cir. 1975). In turn, as the district court discussed at

length, plaintiffs have not come close to stating a claim

under 1985.

No more helpful is plaintiffs' invocation of the Federal

Tort Claims Act, 28 U.S.C. 1346(b), 2671-80. Explicitly

excluded from the FTCA's ambit is "[a]ny claim arising in

respect of the assessment or collection of any tax." Id. ___

2680(c); see, e.g., McMillen v. United States Dep't of ___ ____ ________ _________________________

Treasury, 960 F.2d 187, 188 (1st Cir. 1991) (per curiam). ________

Contrary to plaintiffs' contention, the allegations here fall

readily within this exception. See, e.g., National Commodity ___ ____ __________________

and Barter Ass'n v. Gibbs, 886 F.2d 1240, 1246 (10th Cir. ________________ _____

1989); Capozzoli v. Tracey, 663 F.2d 654, 658 (5th Cir. 1981) _________ ______

( 2680(c) has been "interpreted broadly" to cover activities

that were "in any way related to the [IRS] agents' official

duties").

Plaintiffs' reliance on 26 U.S.C. 7433(a) also proves

misplaced. This provision authorizes a civil action for

damages whenever an IRS official "recklessly or intentionally

disregards" the tax laws in connection with "any collection"

of federal taxes. Yet plaintiffs are complaining of alleged

misconduct that occurred in connection with the calculation

of their tax liability, rather than with the collection

thereof. Such a claim is not cognizable under 7433. See, ___



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e.g., Shaw v. United States, 20 F.3d 182, 184 (5th Cir.), ____ ____ _____________

cert. denied, 63 U.S.L.W. 3181 (1994); Gonsalves v. IRS, 975 _____________ _________ ___

F.2d 13, 16 (1st Cir. 1992) (per curiam). Furthermore, a

prerequisite to any such action is that the taxpayer exhaust

his or her administrative remedies, see 26 U.S.C. ___

7433(d)(1), by filing a written administrative claim with

"the district director ... of the district in which the

taxpayer currently resides," 26 C.F.R. 301.7433-1(e)(1).

There is no suggestion that plaintiffs have complied with

this requirement. The failure to do so deprives the court of

jurisdiction. See, e.g., Venen v. United States, ___ F.3d ___ ____ _____ ______________

___, 1994 WL 567016, at *2-*3 (3d Cir. 1994); Conforte v. ________

United States, 979 F.2d 1375, 1377 (9th Cir. 1992). _____________

Finally, plaintiffs have sought to advance a Bivens ______

claim against defendant in her personal capacity. See Bivens ___ ______

v. Six Unknown Named Agents of Federal Bureau of Narcotics, ________________________________________________________

403 U.S. 388 (1971). In this regard, they contend that

defendant's actions abridged their rights under the First,

Fourth, Fifth, Eighth and Fourteenth Amendments. Because

plaintiffs on appeal have mentioned the point only in

passing, it suffices to note the following. As we explained

in McMillen, courts have been disinclined to create Bivens ________ ______

remedies in the internal revenue context in light of the

"remedial mechanisms for constitutional violations" that

Congress has already implemented in this area. 960 F.2d at



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190-91 (quoting Schweiker v. Chilicky, 487 U.S. 412, 423 _________ ________

(1988)). In particular, courts have specifically disavowed

any Bivens remedy for alleged violations associated with tax ______

assessment and collection activities. See, e.g., Vennes v. ___ ____ ______

An Unknown Number of Unidentified Agents, 26 F.3d 1448, 1453- ________________________________________

54 (8th Cir.), petition for cert. filed, 63 U.S.L.W. 3192 _________________________

(1994); McMillen, 960 F.2d at 190-91; Wages v. IRS, 915 F.2d ________ _____ ___

1230, 1235 (9th Cir. 1990), cert. denied, 498 U.S. 1096 _____________

(1991); Gibbs, 886 F.2d at 1247-48; Tonn v. United States, _____ ____ _____________

847 F. Supp. 711, 716-18 (D. Minn. 1993), aff'd, 27 F.3d 1356 _____

(8th Cir. 1994) (per curiam); see also Cameron v. IRS, 773 ________ _______ ___

F.2d 126, 128-29 (7th Cir. 1985); cf. FDIC v. Meyer, 114 S. ___ ____ _____

Ct. 996, 1005-06 (1994) (declining to imply Bivens action ______

against federal agencies).

Most of these cases, it is true, involved alleged due

process violations, whereas plaintiffs have also claimed

abridgement of their First (and Fourth) Amendment rights.2

At least under the facts alleged, however, this is without

consequence. The Tenth Circuit's pair of opinions in Gibbs _____

("NCBA I"), 886 F.2d 1240, and National Commodity and Barter _______ _____________________________

Ass'n v. Archer, 31 F.3d 1521 (10th Cir. 1994) ("NCBA II") _____ ______ _______

(the appeal following remand), are instructive. With respect

____________________

2. In their district court pleadings, plaintiffs conceded
that their Eighth Amendment claim was without merit. A
similar conclusion applies as to their Fourteenth Amendment
claim. In turn, we have difficulty perceiving how the Fourth
Amendment is implicated by plaintiffs' allegations.

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to allegations that IRS agents had engaged in widespread

misconduct with respect to a tax-protesting organization--

including repeated raids of its headquarters and its members'

homes and seizures of membership records--the court held that

a Bivens claim had been stated under the First and Fourth ______

Amendments. See NCBA I, 886 F.2d at 1248; NCBA II, 31 F.3d ___ ______ _______

at 1527-32. However, with respect to allegations that the

IRS had effected "wrongful jeopardy assessments," the court

declined to recognize a First or Fourth Amendment Bivens ______

remedy "[i]n light of the remedies afforded elsewhere." Id. ___

at 1532. So here, we think the panoply of statutory remedies

available militates against recognition of a First or Fourth

Amendment Bivens remedy with respect to the wrongful ______

assessment of plaintiffs' tax liability.3

____________________

3. Plaintiffs also allege that their suit was improperly
removed to federal court. Removal was plainly appropriate
under 28 U.S.C. 1442(a)(1) (pertaining to suits against
"[a]ny officer of the United States ... for any act under
color of such office"), inasmuch as defendant's relationship
to plaintiffs "derived solely from [her] official duties."
Willingham v. Morgan, 395 U.S. 402, 409 (1969); accord, e.g., __________ ______ ______ ____
Palermo v. Rorex, 806 F.2d 1266, 1269-70 (5th Cir.) _______ _____
(rejecting argument that defendants were not acting "under
color of federal office" because their acts were alleged to
have been maliciously motivated), cert. denied, 484 U.S. 819 ____________
(1987); see also Arizona v. Manypenny, 451 U.S. 232, 242 ________ _______ _________
(1981) ("the right of removal is absolute for conduct
performed under color of federal office"). As such,
plaintiffs' inability to subpoena the United States Attorney
in order to examine the validity of his 28 U.S.C. 2679(d)
certification--about which they also complain--was without
consequence.
As well, plaintiffs object that the district judge
recused himself on the same day that he denied their motion
for reconsideration. To the contrary, the record reveals

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II.

Remaining for consideration is the propriety of the

sanctions imposed upon plaintiffs--as to which some

additional background is necessary. In response to the

district court's order of dismissal, plaintiffs filed a

motion for reconsideration. Displaying a lack of familiarity

with the sovereign immunity doctrine, they there castigated

the court for leaving them with "no remedy" in "clear

defiance of and contempt for federal law." They then

proceeded, in increasingly intemperate language, to warn the

district judge that unless the dismissal were rescinded he

would "stand liable" for possible constitutional violations

and would run the risk of impeachment and of being named as

"a co-conspirator in a far larger Civil Rights matter which

is coming before this court in a series of actions."

According to their certificate of service, plaintiffs sent

copies of this motion to some 28 political officials and

various media outlets.

The district judge held a hearing on the motion, at

which plaintiffs enumerated at some length (and in reasonably

decorous fashion) their objections to the order of dismissal.

The court thereafter, in an oral ruling, voiced its


____________________

that plaintiffs' motion for recusal was denied on that date.
We are told that the judge subsequently recused himself from
other cases involving plaintiffs--an action that has no
bearing on the instant matter.

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disapproval of plaintiffs' conduct. Their veiled suggestion

that the court had conspired with the government, it held,

bordered on "criminal contempt." Their treatment of court

personnel had been "insulting" and "bully[ing]." And their

"vendetta against the IRS and its employees"--pursued through

a series of "frivolous" and "harassing" lawsuits--had "gone

on too long." Accordingly, the court entered a sua sponte __________

order enjoining plaintiffs from filing any further actions in

the District of New Hampshire "against the IRS," including

suits removable from state court, without judicial approval.

It also imposed sanctions in the amount of $293 (representing

the travel costs incurred by government counsel to attend the

hearing). In a subsequent written order in support of this

ruling, the court noted that the instant case was one of

eleven actions that plaintiffs had prosecuted in New

Hampshire federal court since 1986, ten of which the court

found had involved the IRS or its agents. The court

reiterated its injunction as follows:

The clerk of this court is ordered not to
accept any more cases from the plaintiff unless
screened by a Judge Magistrate or Judge of this
court. If the plaintiff by subterfuge, or any
other means[,] sues in a state court knowing that
it has to be removed by the government to this
court, he shall be subject to immediate sanctions
....

The court also there denied the motion for reconsideration.

Federal courts, of course, "possess discretionary powers

to regulate the conduct of abusive litigants." Cok v. Family ___ ______


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Court of Rhode Island, 985 F.2d 32, 34 (1st Cir. 1993) (per ______________________

curiam). Accordingly, "in extreme circumstances involving

groundless encroachment upon the limited time and resources

of the court and other parties, an injunction barring a party

from filing and processing frivolous and vexatious lawsuits

may be appropriate." Castro v. United States, 775 F.2d 399, ______ _____________

408 (1st Cir. 1985) (per curiam). Any bar on future

litigation must be "narrowly tailored" to "fit the specific

vice encountered." Sires v. Gabriel, 748 F.2d 49, 51 (1st _____ _______

Cir. 1984) (per curiam). As we have explained, if such an

injunction "were couched in overly broad terms, this could

impermissibly infringe upon a litigator's right of access to

the courts." Castro, 775 F.2d at 410. We review the entry ______

of such an injunction for abuse of discretion. See, e.g., ___ ____

id. at 408. ___

We think it obvious, under the circumstances, that the

district court intended to restrict the filing of any new

actions against the IRS or its agents (as indicated in the

oral order), rather than to restrict court access across the

board (as suggested in the written order). Even as so

construed, the injunction raises several concerns. An

initial problem is that plaintiffs were not "warned or

otherwise given notice that filing restrictions were

contemplated," and thus were not afforded "an opportunity to

respond" before entry thereof. Cok, 985 F.2d at 35. In Cok, ___ ___



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just as in the instant case, the court entered an injunction

on a sua sponte basis at the close of a motion hearing. We __________

noted that where the plaintiff had been deprived of even

"informal" notice--such as might be provided by way of a

defendant's request for an injunction or a magistrate's

recommendation thereof--the customary route was to issue a

show cause order or a "cautionary" edict. Id. Nothing of ___

the sort occurred here.4

Second, we are unconvinced that the circumstances here--

at least as developed on the present record--were as yet so

"extreme" as to warrant such a measure. Castro, 775 F.2d at ______

408. Plaintiffs contend that, contrary to the court's

finding, only eight of their eleven lawsuits were directed

against the IRS or its agents. While they have offered no

support therefor, an independent review confirms this

contention.5 Of these, the court indicated in its written


____________________

4. While the scheduling notice regarding the hearing is not
in the record, there is no indication from the docket sheet
that it contained any reference to proposed filing
restrictions. We also note that plaintiffs were not afforded
an opportunity to respond following imposition of the court's
oral order, nor were they invited to file an opposition
thereto prior to entry of the written order.

5. We can say with certainty that two of the listed cases,
Tempelman v. United States, No. 91-208, and Tempelman v. _________ ______________ _________
Philbrick, No. 92-409, did not involve the IRS, inasmuch as _________
each was the subject of a recent appeal. (The former
involved the Postal Service; the latter involved a town
moderator.) And a review of the docket sheet reveals that a
third such action, Tempelman v. Hebbel, No. 93-110, involved _________ ______
a private defendant.

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order that two others involved a "rehash" of the issues

involved in the instant complaint; the nature of the other

cases is undisclosed (as is the disposition thereof, although

it appears safe to conclude that each was unsuccessful). It

is thus unclear to what extent plaintiffs have exhibited a

"propensity to file repeated suits against [the IRS or its

agents] involving the same or similar claims." Id. at 409. ___

Compare, e.g., Cok, 985 F.2d at 35, 36 (suggesting that more _______ ____ ___

narrowly drawn ban on further attempts to remove proceedings

from Family Court divorce case would have been approved);

Castro, 775 F.2d at 409-10 (upholding ban on further ______

challenges to nonrenewal of appellants' appointment); see ___

Pavilonis v. King, 626 F.2d 1075, 1079 (1st Cir.) (observing _________ ____

that "litigiousness alone will not support an injunction"),

cert. denied, 449 U.S. 829 (1980). ____________

In turn, it is worth noting that the issue underlying

the instant action--the propriety of defendant's calculation

of plaintiffs' tax liability--was resolved in plaintiffs'

favor in tax court, and that their First Amendment Bivens ______

claim, while ultimately unavailing, would seem to rise above

the frivolous (albeit narrowly). At least a portion of

plaintiffs' litigation efforts, in other words, has contained

a glimmer of merit. We also observe that less severe

measures such as the imposition of monetary sanctions--which

we uphold in the instant case as an appropriate penalty for



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plaintiffs' aspersions against the court--might well suffice

to forestall future actions of a frivolous and vexatious

nature. Cf. Cok, 985 F.2d at 36 (cautioning that injunction ___ ___

restricting court access across the board should be issued

"only when abuse is so continuous and widespread as to

suggest no reasonable alternative").

Finally, several aspects of the injunction as drafted

give us pause. The restriction on state court filings is

problematic, inasmuch as "[a]buse of state judicial processes

is not per se a threat to the jurisdiction of Article III ______

courts." In re Martin-Trigona, 737 F.2d 1254, 1263 (2d Cir. ____________________

1984) (vacating extension of injunction to state courts);

accord, e.g., Anderson v. Mackall, 128 F.R.D. 223, 226 (E.D. ______ ____ ________ _______

Va. 1988). We understand that plaintiffs' propensity to sue

in state court, combined with the automatic right of removal

available to the United States and its employees, provided

the impetus for such a measure. Yet as other courts have

indicated, a narrower restriction ordinarily should suffice.

See, e.g., Sassower v. Abrams, 833 F. Supp. 253, 271, 274 ___ ____ ________ ______

(S.D.N.Y. 1993) (issuing injunction directing that, upon

removal to federal court of any case brought by plaintiff,

leave of court would be required before action could

continue). We also observe that no guidelines have been

provided explaining what plaintiffs must do to obtain

permission to file, see, e.g., Werner v. State of Utah, 32 ___ ____ ______ ______________



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F.3d 1446, 1448 (10th Cir. 1994)--a matter worthy of note

here given the broad category of actions embraced by the

injunction.

It is important to emphasize that, in the face of

plaintiffs' spurious accusations and rancorous tone, the

district court's evident exasperation was fully explicable;

indeed, the care it devoted to a case bordering on the

frivolous is commendable. Nonetheless, in light of the

foregoing factors, we think it appropriate to await another

day before taking the exceptional step of enjoining further

lawsuits.

The dismissal of plaintiffs' complaint is affirmed, as ________

is the imposition of monetary sanctions. The injunction

barring further court filings is vacated. _______

So ordered. __________























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